The new Law on Consumer Protection (Official Gazette No. 35/26, the “Law”) has been adopted by the Serbian Parliament, and fully replaces the previous piece of legislation from year 2021.

The Law enters into force on 1 May 2026, but its application is deferred for three months following entry into force.

An exception applies to provisions governing price indication, and the trader’s right of recourse, as well as certain rules relating to digital content, which apply immediately upon entry into force.

The Law does not introduce fundamental changes to the core structure of consumer protection rights. Instead, it supplements and expands the existing framework by introducing additional obligations for traders and further strengthening enforcement mechanisms, particularly in relation to out-of-court settlement of consumer disputes.

Also, for the first time, the Law systematically regulates consumer rights in relation to digital content, digital services and online marketplaces.

Below is an overview of the most significant novelties.

Digital Content, Digital Services and Online Marketplaces

The Law defines:
Goods with digital elements, as tangible movable goods incorporating digital content or a digital service, without which the goods would not function (e.g. various smart devices);
Digital services, as services enabling the creation, processing, storage, access, or sharing of digital data, including interaction with data generated by the consumer or other users (e.g. cloud services, streaming platforms).

In this context, trader liability is expressly extended to digital components of goods and services, including an obligation to ensure the availability of software updates, as regulated under the Law.

The Law introduces a dedicated section governing consumer rights arising from contracts for the supply of digital content and digital services.

Online marketplaces are defined as services provided via software, websites or applications enabling consumers to conclude distance contracts with traders or other consumers (e.g. various intermediary apps for purchase of goods, services, booking). The provider of an online marketplace is the trader supplying the service mentioned.

In order to ensure transparency, prior to the conclusion of a contract, online marketplace providers are required to inform consumers about the parameters determining the ranking of offers, identity and status of the seller (whether acting as a trader or not), the applicability of consumer protection rules, and the allocation of contractual obligations between the marketplace provider and sellers.

Price Indication

The Law expands obligations relating to price indication. Among other, traders are required to:
– publish, for each retail outlet, a price list in digital form suitable for automated processing on their website,
– ensure real-time updates of such price lists,
– comply consistently with the published prices.

In addition, traders must open an account on the National Open Data Portal and update price lists in a machine-readable format upon each price change.

Detailed implementing rules are expected to be adopted within one year of the Law entering into force. Until then, existing by-laws remain applicable to the extent they are not inconsistent with the Law.

Unfair Commercial Practices

The Law retains the general framework on unfair commercial practices, including misleading and aggressive practices, while expanding the scope of prohibited conduct.

In particular, the following are now expressly recognised as misleading commercial practices:
– presenting reviews as originating from real consumers, without taking reasonable steps to verify their authenticity,
– submitting or commissioning false reviews or endorsements for promotional purposes,
– marketing goods in Serbia as identical to those marketed in EU Member States where such goods differ significantly in composition or characteristics.

The Law introduces an express right for consumers to claim damages suffered as a result of unfair commercial practices.

Conformity of Goods

The rules on conformity of goods and trader liability are further clarified and strengthened. The requirements that goods must meet in order to be considered in conformity with the contract have been expanded. The Law distinguishes between:
– subjective requirements of conformity, referring to characteristics expressly agreed between the parties, and
– objective requirements of conformity, referring to characteristics necessary for normal use and expected performance of goods of the same type.

The Law clarifies the consumer’s right to seek a price reduction or terminate the contract where the trader fails to remedy the lack of conformity (including refusal or failure to do so within a reasonable time), or where the lack of conformity is sufficiently serious to justify price reduction or contract termination.

The Law also introduces explicit liability for legal defects (situations where third-party rights exist that limit or exclude the consumer’s rights, and of which the consumer was neither informed nor had agreed) and such liability may not be contractually excluded.

In addition, the Law establishes a statutory right of recourse for traders against parties in the distribution chain in respect of liabilities arising from lack of conformity.

Amended time limits relating to conformity

The Law introduces several changes to the applicable time limits, some of which are likely to have practical implications for traders:

– The trader remains liable for any lack of conformity that becomes apparent within two years from delivery of the goods (instead of from transfer of risk, as previously regulated);
– The period during which a lack of conformity is presumed to have existed at the time of delivery is extended to one year (previously six months), which shifts the burden of proof to the trader for a longer period following delivery;
– The period during which the consumer may freely choose between remedies (repair, replacement, price reduction or termination) is significantly reduced to 30 days from delivery (previously six months);
– The consumer is required to notify the trader of a lack of conformity within two months from discovery, and in any event no later than two years from delivery.

Commercial Guarantee

The Law aligns terminology with EU law by introducing the concept of a “commercial guarantee”, replacing the previous term “guarantee”.

A commercial guarantee is a statement by the guarantor whereby, in addition to the statutory liability for lack of conformity, they undertake to provide the consumer with repair, replacement, refund, or servicing, if the goods do not meet the specifications or conditions set out in the commercial guarantee or in advertising.

Where the terms of the commercial guarantee are less favourable than those stated in advertising, the more favourable advertising terms prevail.

Misuse of the term “commercial guarantee” remains prohibited.

Out-of-Court Settlement of Consumer Disputes

With the aim of encouraging alternative dispute resolutions (ADR) in consumer matters, the Law strengthens the framework for out-of-court consumer dispute settlements.

Traders are required to inform consumers about the possibility of out-of-court settlements prior to the conclusion of a contract, and upon rejection of a consumer complaint.

The Law also introduces additional obligations for the competent ministry and ADR bodies, aimed at ensuring more effective implementation of out-of-court settlements in consumer disputes.

Sanctions

Non-compliance with the Law is subject to misdemeanour fines:
– for legal entities, from RSD 300,000 to 2,000,000 (approx. EUR 2,560–17,000);
– for entrepreneurs, from RSD 50,000 to 500,000 (approx. EUR 425–4,270);
– for responsible persons in legal entities from RSD 50,000 to 150,000 (approx. EUR 425–1,280).

For less severe infringements, fines amount to RSD 200,000 (approx. EUR 1,700) for legal entities, RSD 100,000 (approx. EUR 850) for entrepreneurs, and RSD 50,000 (approx. EUR 425) for responsible persons.

A key novelty is that fines must be determined in accordance with general misdemeanour principles, taking into account mitigating and aggravating circumstances such as: the nature and severity of the infringement, its duration and scope, and measures taken to remedy harm.

Conclusion

The Law introduces changes that are likely to have a practical impact on traders, particularly in the areas of digital services, online platforms, pricing transparency and enforcement.

Businesses operating in Serbia should review their digital service offerings, pricing systems, complaint-handling procedures, and all other relevant areas of their operations in order to ensure compliance with the new regulation.

If you require any further information or assistance with compliance, please contact us at office@pricapartners.com.